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Sagot :
She can spend $6,480 each year after she retires.
What is a retirement plan?
- A retirement plan is a financial arrangement created to supplement income received from the job after retirement.
- Employers, insurance providers, labor unions, the government, or other organizations may establish these programs.
- By providing advantageous tax treatment to a wide range of plans, Congress has stated a goal to promote sensible retirement planning.
- The Internal Revenue Code's provisions form the basis for the federal tax features of retirement plans in the United States, while the Employee Retirement Income Security Act's requirements are used by the Department of Labor to govern these plans (ERISA).
Solution -
[tex]5000 * 30 = 150,000[/tex]
8% of [tex]150,000 = 12,000[/tex]
The total amount for retirement [tex]= 162,000[/tex]
Number of years to spend money [tex]= 25[/tex]
The money she can spend each year = [tex]\frac{162,000}{25} =6,480[/tex]
Therefore, she can spend $6,480 each year after she retires.
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